In a significant move to combat corruption and ensure high-quality distribution of essential goods, Prime Minister Shehbaz Sharif announced that the 2024 Ramazan Relief Package will be implemented without the involvement of Utility Stores Corporation (USC).
The federal cabinet recently formed a high-level committee to devise a comprehensive plan for the gradual closure of Utility Stores Corporation (USC) across the country.
This decision aligns with broader governance reforms aimed at reducing inefficiencies and eliminating corruption in the distribution of essential commodities.
Traditionally, the Ramazan Relief Package was implemented through Utility Stores; however, the government now seeks to collaborate with the Benazir Income Support Programme (BISP) to ensure that the relief package reaches deserving families directly.
New Strategy for Ramazan Relief Package 2024
During a federal cabinet meeting, Prime Minister Shehbaz Sharif highlighted the rampant corruption and sale of substandard products at Utility Stores.
The prime minister underscored the importance of a more transparent system, stating that the previous model of USC was flawed and unsustainable.
- Complaints of poor-quality products: The government had received numerous reports about the distribution of substandard food items at USC outlets.
- Lack of transparency: There were widespread concerns over mismanagement and corruption in the distribution process.
- Better alternatives available: The Benazir Income Support Programme (BISP) provides a more direct and accountable mechanism for distributing relief funds to the masses.
The Khyber Pakhtunkhwa (KP) government has also stepped up its efforts by providing direct cash assistance to 5,000 families as part of the Ramazan Relief Package.
Economic Outlook and Inflation Trends
Despite economic challenges, Prime Minister Shehbaz Sharif remains optimistic about Pakistan’s economic trajectory. He emphasized the government's efforts to stabilize the economy, citing recent improvements in inflation rates and economic growth indicators.
The Consumer Price Index (CPI) has shown positive trends, with inflation reaching its lowest level in nine years:
- January 2024: Inflation dropped to 2.4% year-on-year.
- August 2024: The headline inflation rate was 9.6%, the first single-digit inflation rate in over three years.
- Recent Months: Inflation has continued to decline, providing relief to consumers.
Despite improvements in inflation, certain essential commodities like sugar, vegetables, and edible oils have seen price hikes. The government has attributed these increases to market fluctuations and international trade dynamics.
One of the key policy decisions was the approval of sugar exports, particularly to Afghanistan.
Saudi Arabia’s Financial Support for Pakistan
Prime Minister Shehbaz Sharif reiterated his commitment to steering the country toward economic prosperity. He emphasized that the government’s primary focus is on sustainable economic growth.
In a move to strengthen economic stability, the Sindh and Balochistan governments have approved an agriculture tax.
To bolster foreign exchange reserves, Pakistan has successfully secured a $1.2 billion agreement with Saudi Arabia. Additionally, the Saudi Development Fund (SDF) has allocated $41 million for a critical water scheme in Mansehra.
